Project to be fully operational by 2020
Hyosung has announced setting up a spandex plant in India by 2019. The spandex plant that the company will build in India is expected to lay the foundation for making inroads into the domestic market of the country. Hyosung has selected India and Vietnam as the strategic bases for ‘100-year Hyosung,’.
Hyosung decided to invest $100 million for a new spandex plant in the first stage. It is planning to set up the plant near Aurangabad, Maharashtra, and complete the construction of the plant by 2019. The company will continuously increase investment as market demands and growth are forecast.
The Indian spandex market has been growing by more than 16% a year on an average from 2012 to 2017, and it is forecast that it will grow by more than 12% a year, while the market size will reach $200 million by 2020.
Hyosung’s spandex brand ‘creora’ accounts for about 60% of the Indian market. It is focusing on the sale of spandex for Muslim wear like hijab, lingerie, sportswear, denim and diapers. In 2020, when the new plant will become fully operational, Hyosung will begin to concentrate on expanding the high-value-added premium market. Also, the company is planning to consolidate its market dominance, creating high profits by increasing its market share to 70%.
The new plant of Hyosung will help related industries such as weaving, knitting, dyeing and sewing to grow and lead to an employment growth, including hiring of competent manpower and invigoration of the overall economy.